Correlation Between Korea Refractories and Samyung Trading

Can any of the company-specific risk be diversified away by investing in both Korea Refractories and Samyung Trading at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Korea Refractories and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Korea Refractories Co and Samyung Trading Co, you can compare the effects of market volatilities on Korea Refractories and Samyung Trading and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Korea Refractories with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Refractories and Samyung Trading.

Diversification Opportunities for Korea Refractories and Samyung Trading

0.0

Correlation Coefficient

Korea Refractories  Samyung Trading

Pay attention - limited upside

The 3 months correlation between Korea and Samyung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Korea Refractories Co and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and Korea Refractories is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Korea Refractories Co are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Korea Refractories i.e., Korea Refractories and Samyung Trading go up and down completely randomly.

Pair Corralation between Korea Refractories and Samyung Trading

If you would invest  0.00  in Korea Refractories Co on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Korea Refractories Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Korea Refractories Co  vs.  Samyung Trading Co

Korea Refractories

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Korea Refractories Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Korea Refractories is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Samyung Trading

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samyung Trading Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Samyung Trading is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Korea Refractories and Samyung Trading

The main advantage of trading using opposite Korea Refractories and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Refractories position performs unexpectedly, Samyung Trading can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Samyung Trading will offset losses from the drop in Samyung Trading's long position.

The idea behind Korea Refractories Co and Samyung Trading Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.